The acquisition of the 33 per cent interest is effective upon the issuance of Baja shares to the Company, which shall be no later than August 30, 2010, and the Company has until September 15, 2010 to exercise its option to acquire the remaining 67 per cent. The Company will invest cash into Baja in the amount of $8,000,000 by July 31, 2010. In addition, an amount of $10,000,000 will be paid to the sellers out of the proceeds from the sale of a portion of Baja's inventory by September 30, 2010. If the option is exercised, the Company will also issue 10,000,000 shares of its common stock.
Baja is a private Mexican company that owns and operates facilities and equipment in the territorial waters of Baja California, Mexico where it fishes for and farms Pacific Northern Bluefin Tuna for sale primarily into the Japanese sushi and sashimi market. Baja is the largest tuna farming operation in Mexico and has been fishing and farming Bluefin Tuna since 2000. The operation is well run and managed and will continue to operate using existing management and employees. The combination of the two companies is anticipated to lead to greater efficiencies and knowledge as they combine and transfer knowledge between Baja and Kali Tuna, Lions Gate's wholly owned subsidiary.
Oli Steindorsson, the Chairman and Chief Executive Officer of the Company, said: "The combination of Baja and our cornerstone operation Kali Tuna will more than double our operations while adding geographical diversity. Additionally, the proximity of the farm to the United States markets will allow us to develop additional markets for Bluefin Tuna in the United States and Canada."
Mr Steindorsson continued: "One of the Company's goal is to produce and distribute high quality bluefin tuna in a sustainable manner. The Mexican government supports our goals in preserving sustainable resources as does the Croatian government. I would like to thank the Croatian government for all its current and past support and look forward to developing common goals with the Mexican government. The combined goals of the Mexican operation and the Croatian operation will be to continue to seek the creation of self sustaining farming environments."
Robert Gudfinnsson, the Director of Baja said: "The combination of the two companies will strengthen both companies by combining the best practices of Baja with the best practices of Kali Tuna. Additionally, the strength of the Atlantis marketing organization which supports Kali Tuna's marketing effort in Japan will bring immediate benefit to the marketing of Baja's tuna."
Lions Gate To Acquire Baja Aquafarms
CROATIA - Lions Gate Lighting Corp.announced that it has entered into an agreement to acquire 33 per cent of Baja Aquafarms ("Baja") along with an option agreement to acquire the remaining 67 per cent (the "Agreements").
